Australia’s Star posts quarterly loss due to regulatory issues; stock drop By Investing.com
Investing.com– Stocks Star Entertainment Group Ltd (ASX:) fell on Monday after the company reported a second-quarter loss due to regulatory issues.
The Australian casino operator reported a loss before interest, tax, depreciation and amortization of A$8 million for the quarter ended Dec. 31, an improvement from a loss of A$18 million in the first quarter.
Star shares fell almost 4% to A$0.135 on Monday.
The loss narrowed as operating expenses declined during the quarter, reflecting efforts to streamline operations in a challenging consumer environment. However, revenue fell 15% to A$299 million, indicating continued pressure on the company’s top line.
The company has faced multiple inquiries about its operations, particularly regarding compliance lapses related to anti-money laundering and governance practices.
To stabilize its business, Star Entertainment has implemented cost-cutting and operational rationalization measures, but headwinds such as weak consumer confidence, reduced gambling activity and regulatory reforms continue to weigh on its recovery prospects.
